Record year for Scottish Friendly ahead of merger – Daily Business

Stephen McGee: landmark year

Scottish Friendly, the Glasgow-based mutual, has posted record overall sales for the year to the end of December, as it heads towards a merger with OneFamily.

The society posted overall sales of £56.1m on an industry standard measure of annual premium equivalent.

The group also reported 60% year-on-year growth in its stocks and shares ISA (individual savings account) and junior ISA products, underlining strong momentum amid a prolonged period of high interest rates.

It said the results reflected the “continued execution of the society’s growth strategy and its focus on delivering long-term value for members”.

It paid £23m to eligible members, including £4.9m through a profit share scheme.

The results for 2025 also show that assets under management totalled £4.4 billion, up from £4.3bn in 2024, driven by positive market returns and net premium flows.

Last year, the society agreed the acquisition of pension and annuities in-payment books of business from FIL Life Insurance, part of the Fidelity International Group, including a £2.16bn block of pensions for around 40,000 policyholders. Subject to court approval, the transfer is expected to complete this September.

A subsequent agreement to merge with OneFamily will create one of the UK’s largest mutual life assurers with about 2.3 million members.

The two firms said in February that they were committed to investing in and maintaining their respective Glasgow and Brighton bases. The enlarged group will also retain the Scottish Friendly, OneFamily and Beagle Street brands. There will be no immediate impact on workers.

The merger is expected to take effect early next year and aligns with the UK government’s ambition to double the size of the mutual and co-operative sector.

Stephen McGee, Scottish Friendly’s chief executive, said: “2025 was a landmark year for Scottish Friendly. We delivered record sales, strong growth in our core ISA products and meaningful returns directly to our members – despite a challenging savings environment.

“Alongside this performance, we’ve taken important strategic steps that will strengthen the society for the long-term and broaden what we can offer members and ensure Scottish Friendly is well positioned for the future.”

Chief financial officer Alan Rankine added: “This has been another year of robust performance, once again demonstrating the resilience and financial strength of the society. Our strong capital position and disciplined approach leave us well placed to continue delivering against our strategic objectives and supporting members and their families over the long term.”

The society said it would continue to champion reform of junior ISA rules to allow grandparents and other family members to open accounts directly, “helping families play a more active role in supporting children’s financial futures”.

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